Saudi Aramco stock: Q3 profit rises as pipeline expansion advances

Saudi Aramco's third-quarter performance improved despite lower production and severe disruption across regional energy markets. Asharq Al-Awsat reported on November 4, 2026, in a story updated on November 11, that adjusted net income rose 9 percent year over year to 117 billion Saudi riyals in the third quarter.

Reported net income attributable to shareholders increased 41.3 percent to 137.39 billion Saudi riyals. The difference between reported and adjusted earnings largely reflected exceptional items, including a gain from the sale of Aramco's stake in Malaysia's PRefChem refining and petrochemicals venture. The disposal was completed in September as part of a broader portfolio restructuring.

Refining Strength Offsets Lower Output

Higher crude prices supported the quarter, with Aramco's average realized oil price reaching 95.2 US dollars per barrel, compared with 70.1 US dollars a year earlier. Total hydrocarbon output fell about 17 percent to 11.05 million barrels of oil equivalent per day, while liquids and gas production also declined.

The downstream business provided a strong counterweight. Adjusted earnings before interest, income taxes and zakat in refining, chemicals and marketing rose 234 percent to about 10.3 billion US dollars, supported by improved refining margins. Upstream adjusted earnings fell to 46.8 billion US dollars as lower sales volumes and higher production royalties offset stronger crude prices.

Pipeline Expansion Targets Flexibility

Aramco has begun preliminary engineering for an expansion of the East-West pipeline, which transports oil from the Eastern Province to Red Sea export terminals. The company is also considering additional crude storage near major demand centers and export routes. The projects are intended to diversify transport options and reduce dependence on any single route during future disruptions.

Management also expects production recovery to advance quickly. The Zuluf oilfield is being expanded, with additional capacity of up to 600,000 barrels per day targeted by year-end. The second phase of the Jafurah gas project is intended to lift production to 2 billion standard cubic feet per day by 2030.

Cash Flow Supports Investment

Free cash flow increased 20 percent to 105.8 billion Saudi riyals in the quarter, while operating cash flow rose to 145.2 billion Saudi riyals. Aramco kept its 2026 capital spending outlook at 50 billion to 55 billion US dollars and said free cash flow excluding working capital changes reached 87.4 billion US dollars in the first nine months.

The company said its gearing ratio improved to 5.5 percent at the end of September from 6.2 percent at the end of June. For investors, the combination of stronger cash generation, infrastructure spending and exposure to crude prices leaves earnings sensitive to production volumes, refining margins and the pace of recovery in global energy supply.

Saudi Aramco's Integrated Energy Model

Saudi Aramco is one of the world's largest integrated energy and chemicals companies. Its upstream business manages Saudi Arabia's hydrocarbon reserves, while its downstream operations cover refining, chemicals and marketing in the Kingdom and international markets. Headquartered in Dhahran, Saudi Arabia, the company employs more than 76,000 people and operates across the Kingdom and worldwide.

Saudi Aramco's plans are part of a wider energy-market backdrop shaped by supply risks, inventory levels and crude-price movements. Follow current global market developments.